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Council adopts midyear budget adjustments; approves reserve changes and pension trust contribution
Summary
The Moraga Town Council approved midyear operating budget adjustments, authorized transfers of FY 2023–24 excess general‑fund balance to capital and pension accounts, and reviewed a 10‑year forecast that signals deficits without new revenues or ongoing balancing steps.
The Moraga Town Council on March 12 adopted several budget actions: midyear adjustments to the fiscal year 2024–25 general fund, midyear adjustments to the Hacienda de las Flores operating budget, and an updated reserve policy that reallocates a portion of FY 2023–24 excess unassigned fund balance to capital and pension funds.
Administrative Services Director Katie Bruner presented midyear revenue and expenditure results through Dec. 31, 2024 and recommended limited revenue increases (about $50,000 in property tax and roughly $66,000 in Parks & Recreation revenues) and expenditure appropriations for seasonal Parks & Rec staffing and event materials. Bruner said those adjustments leave the general fund projected to end FY 2024–25 with revenues exceeding expenditures by about $83,000.
Separately, the council approved corrected midyear numbers for the Hacienda operating budget and authorized an increase of $50,000 in appropriation for anticipated utility costs that will be reimbursed by event users; Councilmember Carrie Hillis recused from the Hacienda vote due to a proximity conflict and the motion passed 4–0 with one abstention.
On reserves, staff reported the June 30, 2024 ending unassigned general‑fund balance of roughly $8.83 million and recommended updating the reserve policy to designate the general fund reserve as a council‑committed fund and to calculate the 50% reserve target on the current year’s adopted budget rather than prior year actuals. Council adopted a resolution allocating $1,000,000 to the town’s asset replacement fund and $500,000 to a Section 115 pension trust from FY 2023–24 excess unassigned balances to help smooth expected CalPERS cost increases.
Bruner and council discussed the town’s projected CalPERS unfunded accrued liability curve and presented a 10‑year general fund forecast showing expenditures beginning to exceed revenues in FY 2025–26 absent additional budget balancing or new revenue sources. Staff identified potential follow‑up actions including study of new revenue sources, a fee study, reserve policy review, and use‑policy development for the pension trust.
Council adopted the recommended midyear adjustments and reserve allocations; staff will include the forecast outcomes in upcoming budget development and return with policy options.
